Investing in real estate can be a lucrative venture, but high property prices in some cities can make it challenging for prospective investors to get started. Fortunately, there are hidden gems across America with affordable real estate markets that offer excellent investment opportunities. In this blog, we will explore the top ten cheapest cities to invest in America, where you can make the most of your investment dollars while potentially reaping significant returns.
1. Indianapolis, Indiana
*In June 2023, the median listing home price in Indianapolis, IN was $269K, trending up 7.6% year-over-year. The median listing home price per square foot was $143. The median home sold price was $242K.
Nicknamed the “Crossroads of America,” Indianapolis offers a diverse economy, job growth, and an affordable cost of living. The city’s real estate market is relatively stable, and low property prices make it attractive for investors seeking long-term rental income or potential for property value appreciation.
2. Memphis, Tennessee
*In June 2023, Memphis home prices were down 2.4% compared to last year, selling for a median price of $205K
As the largest city on the Mississippi River, Memphis is renowned for its rich cultural heritage and musical legacy. With a low median home price and a strong rental market, Memphis presents a great opportunity for buy-and-hold investors looking to build a real estate portfolio with cash flow.
3. Birmingham, Alabama
*In June 2023, Birmingham home prices were down 8.8% compared to last year, selling for a median price of $228K
Birmingham’s real estate market has been steadily growing over the years, thanks to its expanding economy and affordable home prices. Investors can take advantage of the city’s revitalization efforts and find excellent investment properties at attractive prices.
4. Cleveland, Ohio
*Cleveland, OH Housing Market ... The median listing home price in Cleveland, OH was $115K in June 2023, trending down -1.7% year-over-year.
Cleveland boasts a thriving arts and culture scene, along with a relatively low cost of living and affordable real estate prices. Investors can explore the city’s diverse neighborhoods, which offer a mix of fixer-uppers and turnkey properties.
5. Kansas City, Missouri
*The typical home value of homes in Kansas City MO is $231 454. Kansas City MO home values have gone up 3.6% over the past year
With its strong job market and affordable housing options, Kansas City has emerged as an attractive destination for investors. The city’s central location and growing tech sector add to its appeal, providing potential for both residential and commercial investments.
6. Houston, Texas
*The typical home value of homes in Houston TX is $264540. Houston TX home values have gone down 0.1% over the past year.
Houston’s real estate market offers a plethora of investment opportunities due to its robust economy and population growth. The city’s diverse neighborhoods cater to various investment strategies, from rental properties to house-flipping ventures.
7. Buffalo, New York
*In June 2023, the median listing home price in Buffalo, NY was $187.9K, trending up 4.4% year-over-year.
Buffalo has been experiencing a renaissance in recent years, with a focus on revitalizing its historic neighborhoods. The city’s low property prices and the potential for growth make it an attractive choice for value investors seeking affordable opportunities.
8. Milwaukee, Wisconsin
*The Milwaukee, WI housing market is very competitive, scoring 72 out of 100. The average Milwaukee house price was $200K last month, up 3.6% over the past year.
Milwaukee offers a balanced real estate market with affordable housing options and strong rental demand. The city’s waterfront location, cultural attractions, and vibrant economy create an appealing environment for investors.
9. Tucson, Arizona
*The median sale price of a home in Tucson was $330K last month, down 2.9% since last year.
Tucson’s sunny climate and affordable real estate draw in both retirees and investors. With a lower cost of living compared to other Arizona cities, Tucson presents an excellent opportunity for those seeking to invest in the southwestern U.S.
10. Detroit, Michigan
*The median sale price of a home in Detroit was $75K last month, down 21.1% since last year.
Detroit has seen a resurgence in recent years, with revitalization efforts and a growing tech and automotive sector. Investors can find incredibly affordable properties in the city, which presents exciting prospects for long-term growth and rental income.
While investing in real estate always carries some level of risk, considering more affordable cities can be a smart strategy for new and experienced investors alike. The ten cities mentioned above offer a mix of affordability, economic stability, and growth potential, making them attractive destinations for real estate investment.
Before diving into any investment, it’s crucial to conduct thorough research, consult with local experts, and analyze market trends. Each city has its unique market conditions, so understanding the local dynamics will help you make informed decisions and maximize your returns in the long run. Happy investing!
